Aaron Katsman
IsraelNewsletter.com

The Israeli business daily Globes is reporting that Boeing (BA) has selected a training system made by the Israeli defense contractor Elbit Sysytems (ESLT), to be used in US Navy training.

According to Globes: ” Boeing Co. has selected Elbit Systems Ltd. as the supplier for the US Navy’s T-45 Goshawk Virtual Mission Training System (VMTS)…..The T-45 will replace aging T-39s as a key element in the US Navy’s Undergraduate Military Flight Officer (UMFO) training modernization plan. The T-45 will provide realistic training at a lower cost in a fighter-like environment.”

Elbit Systems has been an IOI favorite for quite some time. The company has continued to sign deal after deal and has a pipeline of almost $5 billion. While the size of the deal wasn’t disclosed, this type of high profile deal is great not only for the company but for shareholders as well. While Elbit has done a phenomenal job of growing the business and creating profits for shareholders, the company still remains under the ‘radar screen’ of many investors. This type of high profile deal involving Boeing and the US Navy, is the kind of deal that can put the spotlight on the company, and create general knowledge to the greater investment community.

This deal could be problematic for those in Seattle (read our post on the issue) that are pushing the city to divest from Israel. A hi-profile Seattle employer that enters into a defense deal with an Israeli company, to help train US Navy fighters. It can’t get worse than that.

Disclosure: Author’s fund has a position in ESLT. He has no position in any other stock mentioned as of 7/02/08.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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Aaron Katsman
www.IsraelNewsletter.com

Israeli diplomatic ties with France continue to warm, and today’s news that the French have selected  Elbit Systems (ESLT) to supply the Skylark I unmanned air vehicle (UAV) systems to France’s Special Forces. Elbit won a tender involving 10 of the leading UAV manufacturers worldwide. Very impressive. Since Nicolas Sarkozy took over the French presidency, not only have ties with the U.S. gotten much better, but the French have turned to be very friendly with Israel as well. This defense deal bears out the point.

This win is another in a long line for Elbit Systems. Commenting on the deal Haim Kellerman, General Manager of Elbit Systems UAV Division and Corporate Vice President said,” that there is a worldwide growing demand for UAVs for Special Forces, counter terrorism units and other forced focused on the security of borders and sensitive facilities. France’s selection of the Skylark® attests to its ability to meet the sophisticated challenges of the modern battle field. Elbit Systems considers this agreement with France’s Special Forces as a milestone in entering the French market and believes that it will be followed by further agreements with European NATO member countries.”

This win is not only important for Elbit Systems, it is an important victory in French-Israel relations.

Disclosure: Author’s fund holds a position in ESLT  as of 3/25/08.

Please see our Disclaimer HERE.

NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.

Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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